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x-Montana Energy Forum Feed1542663757en-usUnifying issues for a divided Congress? Try American infrastructure and energyhttp:///article/unifying-issues-for-a-divided-congress-try-american-infrastructure-and-energy
http:///article/unifying-issues-for-a-divided-congress-try-american-infrastructure-and-energyTue, 13 Nov 2018 00:00:00 -0500In the wake of a bruising and contentious midterm season—and with control of Congress now split between the parties — Americans on both sides of the political divide are wondering whether Washington can find anything to agree on in the year ahead. Our view? Sure, it can.

API and NABTU’s combined advocacy experiences demonstrate that when organizations inside the Beltway work together, there are always issues on which bipartisan consensus can be found and coalitions formed. We believe public infrastructure investment to deliver America’s energy is one of those issues.

This was evident in the 2018 election, where we saw growing agreement that our country is in the midst of an energy revolution driven by American ingenuity. Over the last ten years, highly skilled workers and technological innovations have helped make America the world’s No. 1 producer of natural gas and oil. This is a factor in driving down costs for consumers, creating more middle-class sustaining jobs, dramatically cutting our dependence on foreign energy sources, and reducing carbon dioxide emissions to 25 year lows.

Our public infrastructure and energy policies should know no party and bring out the maverick in politicians on both sides of the aisle. Infrastructure and energy affect every single American every single day — they are simply too important to fall victim to the same partisan calculations as with other issues.

For this reason, in the upcoming 116th Congress, Democrats and Republicans alike can take pride in America’s energy revolution, the highly trained workforce that supports it, and the local economic benefits which investment brings.

To fully realize this potential, one of the first things the new Congress must do to is to act on legislation that invests in America’s roads, bridges, and critical water and energy infrastructure...

]]>North American Energy Markets Will Benefit From USMCAhttp:///article/north-american-energy-markets-will-benefit-from-usmca
http:///article/north-american-energy-markets-will-benefit-from-usmcaWed, 07 Nov 2018 00:00:00 -0500After more than a year of intense negotiations, the United States, Canada and Mexico reached an agreement to update the North American Free Trade Agreement, the 1994 pact that governs more than $1.2 trillion worth of trade among the three nations.

The new deal won't go into effect right away as most of the key provisions don't start until 2020. Leaders from the three countries must sign it and then Congress and the legislatures in Canada and Mexico must approve it, a process that is expected to take months. If approved, the United States Mexico Canada Agreement (USMCA) stipulates that the three nations will review the agreement after six years. If all parties agree it's working then the deal will continue for the full 16-year period (with the ability to renew after that for an additional 16 years).

While details have not yet been released, the deal has significant changes for automakers, opens Canada's milk market to U.S. dairy farmers and maintains arbitration rules that many American companies hoped would be kept in place. The new trade pact reduces a dispute resolution provision for multinational companies operating in other countries but gives an exception for some sectors, including oil and natural gas.

So, what will the effects of the new agreement be on the energy market?

No Tariffs on Energy

USMCA ensures a "zero-tariff" on energy products traded between the United States, Mexico and Canada. These provisions allow the energy industry to continue expanding U.S. natural gas exports into Mexico without worrying about tariffs. Additionally, American refiners will still be able to tap some of the 3.3 million barrels of oil exported from Canada each day.

]]>DOE Says Natural Gas Trade Between U.S., Canada Slowed in 1H2018http:///article/doe-says-natural-gas-trade-between-u-s--canada-slowed-in-1h2018
http:///article/doe-says-natural-gas-trade-between-u-s--canada-slowed-in-1h2018Mon, 05 Nov 2018 00:00:00 -0500Natural gas trade slowed down in both directions across the border between Canada and the United States during the first six months of this year, according to the latest scorecard compiled by the U.S. Department of Energy (DOE).

Canadian pipeline exports, while still the top item in North American cross-border flows, declined 1.5% to 1.54 Tcf in 1H2018, down from 1.56 Tcf in 1H2017, according to DOE's natural gas regulation office.

U.S. exports to Canada fell 21% to 397.7 Bcf in January through June 2018, down from 497.3 Bcf in the same period of 2017. Daily northbound U.S. gas exports of 2.2 Bcf were barely more than one-fourth of 8.5 Bcf in southbound Canadian flows.

Prices also turned down at the Canada-U.S. border, with reductions undermining the value of pipeline deliveries in both directions. The average fetched by Canadian gas exports dropped 12% to US$2.38/MMBtu in 1H2018, down from $2.70 in 1H2017. Northbound U.S. exports lost 3% to $3.10, down from $3.20.

Canadian border prices invariably come out lower as averages for deliveries across the continent to widely variable markets. Northbound U.S. pipeline exports go to Canada's highest-priced destinations in Ontario, Quebec and the Atlantic provinces.

]]>New Report Highlights U.S. Natural Gas Industry's Leadership in Protecting America's Critical Infrastructure From Cyberattackshttp:///article/new-report-highlights-u-s--natural-gas-industrys-leadership-in-protecting-americas-critical-infrastructure-from-cyberattacks
http:///article/new-report-highlights-u-s--natural-gas-industrys-leadership-in-protecting-americas-critical-infrastructure-from-cyberattacksWed, 31 Oct 2018 00:00:00 -0400The American Petroleum Institute (API), the Natural Gas Council (NGC) and the wider membership the Oil and Natural Gas Subsector Coordinating Council (ONG SCC) – the official body representing the operators of natural gas and oil infrastructure to federal agencies involved in industry-related security – released a report today titled, “Defense-in-Depth: Cybersecurity in the Natural Gas and Oil Industry.” The report describes the industry’s resilience and preparedness to defend itself and energy consumers against malicious cyber threats and provides insight for policymakers into the comprehensive cybersecurity programs of the natural gas and oil industry.

“Cybersecurity is a top priority for the natural gas and oil industry,” said API President and CEO Mike Sommers. “As the owners and operators of critical energy infrastructure, our companies are providing the leadership, proactive solutions and ongoing coordination with federal agencies to help prevent future cyberattacks. Natural gas and oil pipeline systems are purpose-built to be highly resilient and our members are leaders in cybersecurity, sharing cyber threat indicators and intelligence with each other and with the U.S. government through the Oil and Natural Gas Information Sharing and Analysis Center (ONG-ISAC).”

In conjunction with the report, API launched a video highlighting the American natural gas and oil industry’s investment in people and cybersecurity technology to keep America’s energy infrastructure safe and operating reliably. This is a reminder to the Administration and policymakers on Capitol Hill that the natural gas and oil industry – an industry that provides cleaner, more reliable energy – is committed to investing its own capital to maintain and safeguard its infrastructure.

Key points in the report include:

Companies acknowledge that cyberattacks can present “enterprise risks” – risks that could compromise the viability of a company – and have developed comprehensive approaches to cybersecurity.

Companies orient their information technology (IT) and industrial control systems (ICS) cybersecurity programs to leading frameworks and best-in-class standards, especially the National Institute of Standards and Technology (NIST) Cybersecurity Framework and the ISA/IEC 62443 Series of Standards on Industrial Automation and Control Systems (IACS) Security.

Cyber threats are not new or unique to pipelines; they are present across the energy system, including at coal and nuclear plants. Pipeline companies have layers of security in place to protect against cascading failure, which also include mechanical controls that are not capable of being overridden through any cyber compromise of ICS.

The natural gas system is highly resilient because the production, gathering, processing, transmission, distribution and storage of natural gas is geographically diverse, highly flexible and elastic, characterized by multiple fail-safes, redundancies and backups.

Reliance upon voluntary mechanisms including proven frameworks and public-private collaboration, rather than prescriptive standards or regulations, is the best way to bolster the cybersecurity of natural gas and oil companies and the energy infrastructure they operate, and to afford the necessary flexibility and agility to respond to a constantly-changing cyber threat landscape....

The coastlines of the United States are not the actual borders of the United States. The U.S. border is actually 200 miles away from the coastline. This area around the country is called the Exclusive Economic Zone (EEZ).

In 1983, President Ronald Reagan claimed the EEZ in the name of the United States. In 1994, all countries were granted an EEZ of 200 miles from their coastlines under the International Law of the Sea.

The ocean floor extends from the coast into the ocean on a continental shelf that gradually descends to a sharp drop, called the continental slope. The width of the U.S. continental shelf varies from 10 miles to 250 miles (16 kilometers to 400 kilometers). The water on the continental shelf is relatively shallow, rarely more than 500 feet to 650 feet (150 meters to 200 meters) deep.

The continental shelf drops off at the continental slope, ending in abyssal plains that are 2 miles to 3 miles (3 kilometers to 5 kilometers) below sea level. Many of the plains are flat, while others have jagged mountain ridges, deep canyons, and valleys. The tops of some of these mountain ridges form islands where they extend above the water.

Several federal government agencies manage the natural resources in the EEZ. The U.S. Department of the Interior's Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement manage the development of offshore energy resources by private companies that lease areas for energy development from the federal government. These companies pay royalties to the government on the energy resources they produce from the leased areas in the ocean. Most states control the 3-mile area that extends off of their coasts, but Florida, Texas, and some other states control the waters for as much as 9 miles to 12 miles off of their coasts...

]]>New Poll Shows Majority Of Voters Are Concerned About Expanding The Sale Of E15 Gasolinehttp:///article/new-poll-shows-majority-of-voters-are-concerned-about-expanding-the-sale-of-e15-gasoline
http:///article/new-poll-shows-majority-of-voters-are-concerned-about-expanding-the-sale-of-e15-gasolineMon, 29 Oct 2018 00:00:00 -0400Today the American Petroleum Institute released the results of a new national poll conducted by Harris Poll, showing that the vast majority of voters are concerned about the Trump administration’s proposal to allow the year-round sale of higher ethanol blended E15 gasoline.

“Consumers are speaking loud and clear,” said API Vice President of Downstream and Industry Operations Frank Macchiarola. “These numbers reinforce the need for the administration to reconsider this decision to allow year-round sale of E15. Voters understand that allowing sale of a fuel that is not designed for nearly 75 percent of cars on the road today puts consumers at risk. American families should not have to be burdened with an unexpected car repair bill because of a fuel that our government essentially pushed into the marketplace against the clear letter of the law.

“E15 is symptom of the broken Renewable Fuel Standard and it’s time for real reform. There is bipartisan agreement that the RFS is a failure and we urge the administration to support consensus legislation to significantly reform the RFS for the benefit of all consumers.”

Key poll results:

79 percent of voters are concerned about expanded E15 sales and vehicle incompatibility.

83 percent of voters are concerned that consumers could shoulder higher pump prices if service stations are forced to invest in new infrastructure to accommodate certain types of fuels.

68 percent of voters are concerned about consumers mistakenly using E15 and causing damage to their engines.

81 percent of voters are concerned that government requirements could exceed the 10 percent level of ethanol in the nation’s fuel supply which studies have shown could increase gasoline prices by up to 26 cents per gallon...

]]>Baker Hughes: US rig count up 1 unit to 1,068http:///article/baker-hughes-us-rig-count-up-1-unit-to-1068
http:///article/baker-hughes-us-rig-count-up-1-unit-to-1068Fri, 26 Oct 2018 00:00:00 -0400The US drilling rig count was up 1 unit to 1,068 rigs working for the week ended Oct. 26, according to Baker Hughes data. The count is up 159 units from the 909 rigs working this time a year ago.

Land-based rigs rose 2 units to 1,046 for the week. Offshore units fell by 1 to 19 rigs working, while those drilling in inland waters remained unchanged at 3 rigs working.

Oil-directed rigs were up 2 units from last week to 875 units working, and up 138 units from the 737 rigs drilling for oil this week a year ago. Gas-directed rigs were down 1 unit to 193, yet up 21 units from the 172 rigs drilling for gas a year ago.

Among the major oil and gas-producing states, North Dakota and Alaska were the biggest gainers this week, up 2 rigs each to respective counts of 54 and 5.

New Mexico, with 101 rigs working, and West Virginia, with 14 units drilling, were up 1 unit each this week vs. last.

First, the United States produced a record 11 million barrels of oil per day (mbd) in September, 2.2 mbd more than September 2017, according to API’s latest Monthly Statistical Report (MSR). It’s a remarkable output number, given where domestic production was less than two decades ago. A chart from the MSR shows the recent steady growth in U.S. crude oil production:

Thanks to technologies and innovations associated with developing energy from shale and other tight-rock formations and deep-water regions, the U.S. is the world’s leading producer natural gas and oil producer and refiner. Our domestic energy abundance has helped boost the economy and benefit consumers while making the nation stronger and more secure in the world. API Chief Economist Dean Foreman:

“The United States has continued to lead the world in oil production growth this year and that growth is helping to meet growing energy needs at home and abroad despite production losses by some OPEC nations. As a result, consumers have continued to enjoy affordable fuel prices that also are a key advantage for the U.S. economy.”

The U.S. is now producing crude oil at levels not seen since early in 1970, when 9.63 mbd on average were produced for the year.

Second point: Just as remarkable is the fact the United States’ world leadership in natural gas and oil production is accompanied by world leadership in cutting greenhouse gas emissions.

According to just-released EPA data, reported GHG emissions declined 2.7 percent since 2016 and, according to the U.S. Energy Information Administration, carbon dioxide emissions have reached 25-year lows. This is primarily due to increased use of clean natural gas as a fuel for generating electricity. EPA’s chart below shows that reported CO2 emissions from power plants have dropped 19.3 percent since 2011:

“The United States leads the world both in natural gas and oil production and in cutting GHG emissions – clean natural gas produced through advanced technologies like hydraulic fracturing is playing a significant role in driving carbon dioxide emissions to 25-year lows. Americans have the cleanest air in decades due in part to the increased use of natural gas to generate electricity, demonstrating that environmental protection and economic growth are not mutually exclusive.”

Feldman’s last point above is very important. The U.S. has shown that increased energy production, economic growth and significant environmental progress can occur together. The U.S. has not been forced to sacrifice energy and economic growth to achieve lower emissions.

There’s the increased use of natural gas that’s key, and also industry leadership in emissions-cutting technologies in operations and in products. Members of The Environmental Partnership are committed to further reducing methane emissions during natural gas and oil production. Feldman:

“The natural gas and oil industry has invested more than double the next highest industry sector in zero- and low-emissions technologies – since 2000 – to deliver the affordable and reliable energy we need while protecting human health and the environment and industry’s initiatives, highlighted by programs such as The Environmental Partnership, will further environmental progress.”

Again, these are the hallmarks of America’s modern natural gas and oil industry – producing more energy and doing it more efficiently through the use of advanced technologies, leading to lower emissions and cleaner air.

]]>In Win for Trump, Merkel Changes Course on U.S. Gas Importshttp:///article/in-win-for-trump-merkel-changes-course-on-u-s--gas-imports
http:///article/in-win-for-trump-merkel-changes-course-on-u-s--gas-importsMon, 22 Oct 2018 00:00:00 -0400BERLIN—Chancellor Angela Merkel has offered government support to efforts to open up Germany to U.S. gas, a key concession to President Trump as he tries to loosen Russia’s grip on Europe’s largest energy market.

Over breakfast this month, the chancellor told a small group of lawmakers her government had decided to co-finance the construction of a €500 million ($576 million) liquefied natural gas shipping terminal in northern Germany, according to people familiar with the meeting, giving a crucial nudge to a project that had failed to get off the ground for years in a country that gets most of its gas cheaply from Russia.

Mr. Trump has intensively lobbied Europe to buy significant amounts of LNG as part of his campaign to rewrite the terms of trade relations. German and U.S. officials said Berlin hoped embracing U.S. gas might help solve a protracted trade dispute and possibly even defuse threats by Washington to sanction Nord Stream 2, an unbuilt German-Russian gas pipeline that would double Russia’s existing gas export capacity to Germany.

As she briefed lawmakers from Germany’s northern coastal region, Ms. Merkel didn’t describe her change of mind as a defeat but as a “strategic” decision that could pay off in the longer term, according to the people. Experts agree that opening up its energy market won’t have an immediate economic benefit for Germany, but it could eventually help the country diversify.

For years, plans to build an LNG terminal by several groups were stalled because there was no government support that would make such a project economical. On Oct.16, less than a week after the meeting...

]]>U.S. Sets New Record for Oil Production in September Meeting Virtually All Global Demand Growthhttp:///article/u-s--sets-new-record-for-oil-production-in-september-meeting-virtually-all-global-demand-growth
http:///article/u-s--sets-new-record-for-oil-production-in-september-meeting-virtually-all-global-demand-growthThu, 18 Oct 2018 00:00:00 -0400WASHINGTON, October 18, 2018 – The American Petroleum Institute’s latest monthly statistical report shows the U.S. produced a record 11.0 million barrels of crude oil per day (mb/d) in September. U.S. liquid fuels production grew 2.2 mb/d year-over-year (y/y), and the U.S. met virtually all global oil demand growth. As supply increased, crude oil inventories also rose in September but remained nearly 14 percent below those of September 2017.

“The United States has continued to lead the world in oil production growth this year and that growth is helping to meet growing energy needs at home and abroad despite production losses by some OPEC nations,” said API Chief Economist Dean Foreman. “As a result, consumers have continued to enjoy affordable fuel prices that also are a key advantage for the U.S. economy.”

With seasonal slowing after the summer driving season, U.S. petroleum demand slowed to 20.1 mb/d in September from 20.8 mb/d in August. Despite weaker demand, product inventories fell between August and September as refinery throughput slowed due to scheduled maintenance turnarounds.

Consequently, the market remained balanced in a way that continued to support prices. West Texas Intermediate (WTI) oil averaged $70.23 per barrel in September, up $2.17 per barrel from August. By contrast, international Brent crude oil prices averaged $78.89 per barrel, up $6.36 from August. Higher international prices reflected a market that has grappled with geopolitical uncertainties and the effects of Iranian sanctions.

September highlights:

Strongest year-to-date jet fuel demand on record.

Refinery and petrochemical feedstock demand up more than 0.5 mb/d since September 2017